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family trust can't pay debt - advice please

Discussion in 'Accounting, Tax & Legal' started by TLC, 16th Sep, 2010.

  1. TLC

    TLC New Member

    Joined:
    16th Sep, 2010
    Posts:
    1
    Location:
    ACT
    Hi,

    My husband was in the cabling business with a contract, recently we hadn't been getting too much work so he obtained a fulltime job and some weekends doing work for the business.

    We have 1 major debt which we had been paying off but now due to not really doing much work for the business we can't pay them as much money per week as they would like, I don't feel we personally should contribute paying money towards this debt.

    We have a company name trading for a trust.Any advice would be much appreciated.
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    You need to get advice from a solvency practitioner without delay.

    Protection of trusts with $2 corporate trustees is often more illusory than effective. Both the Bankruptcy Act and Corporations Act have comprehensive legislation covering this issue. So do not use this as an excuse for inaction.

    As time passes, your chances of a satisfactory settlement decreases because you are aware of pending problems.

    Cheers,

    Rob